"The government is supporting a range of investments in energy technology to create improved ways of providing energy to Victorian families and businesses with low or no greenhouse gas emissions."

The funds will go towards the new 1.5 megawatt solar pilot plant, which will have 40 photovoltaic dishes.

"This funding takes Solar Systems one step closer to its planned development of a large scale solar power plant in Mildura that could provide enough electricity to power more than 35,000 households and create high skill local jobs,” Mr O’Brien said.

Greater investment in renewable energy sources is a great sign because it has the potential to ease electricity prices and mitigate the impact of climate change.